On the topic of big companies making strategic errors, it's not entirely unthinkable that if AI generates a lot of hype, Google would throw away its market-dominating search engine and replace it with some AI chatbot-thing without market dominance.

It could very well be that even a small chance of this happening can cause Microsoft to go all in on making Bing more AI. Being very expensive is the point.

See also: Star Wars, Itanium.